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Cancel the debts?

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philjohnston posted on Wed, Nov 3 2010 2:26 PM

If the whole world were to magically come to a moral decision to cancel the debts in all 3rd world countries - what would the outcome be?

Bad for western countries? Good for them? Bad for bankers? Bad for citizens? Good? Good for 3rd world countries?

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Sorry to butt in here - I guess a more feasible option from the IMF and World bank would be to end all Structural Adjustment Programs.

They have even admitted it doesn't help:
http://www.brettonwoodsproject.org/art-16300
http://www.imf.org/external/pubs/ft/staffp/2000/00-00/e.pdf

In 2005 the G8 Cancelled a bunch of debt in 3rd world countries:
http://www.pbs.org/newshour/bb/africa/jan-june05/debt_6-13.html

I'm not aware of if or how that was actually carried out - but I guess it is possible for it to happen.

But you are all basically saying that if we cancelled all the debts - the entire banking system would crash?
(not that we won't hit hyperinflation here anyway if we keep printing money...QE2 anyone?)

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to hold anyone accountable  for money they never got or for dept they never agreed to is clearly not moral wish the austrian school got into this topic more :"Bad for western countries? Good for them? Bad for bankers? Bad for citizens? Good? Good for 3rd world countries?""would be very hard to break up who its  good and bad  for. if you dont beleave it is moral dont support it.

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to hold anyone accountable  for money they never got or for dept they never agreed to is clearly not moral wish the austrian school got into this topic more

Economics is value free.  The libertarian position is that there is no obligation to repay.

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